from a shark fossil website. Again, since
the policy includes bric-a-brac as fine
arts, the shark teeth could be considered
fine arts and should be covered as such.

Determining real value

But once an item has been identified as a
fine art or even a collectible that the insurer will allow the insured to schedule
onto the policy, valuation is the next step.
In order to determine a value, most fine
arts and even collectibles should have an
appraisal from a professional appraiser
who specializes in appraising works of
that sort. A jewelry appraiser’s opinion on
the value of the insured’s statuary is probably not accurate. You need the proper
appraiser for the respective item.

Appraisals need to be detailed; they
need to list the materials used in the art
work, be it gems and metals or oils and
canvas, era in which the work was created, quality of the pieces used in the work,
and other information. For jewelry, the
quality, color, carat weight, type of stone,
and whether it has been heated, irradiated, filled or received other treatment are
all important information.

With furs it is important to know the
type of fur, whether it has been dyed, how
much of the garment is fur, area of origin,
and condition of the garment are what’s
important. Guns, cameras, musical instruments, antique furniture, porcelains,
coins and stamps all have their specifications as to what is valuable property and
just how valuable it is.

The American Society of Appraisers
and the National Association of Jewelry
Appraisers can point insureds in the right
direction to locate an honest and qualified
appraiser. There are appraisers for most
any type of property, the issue is in finding them. Remember that condition also
affects the value of the property. A faded
painting, no matter how famous the painter, will not be worth the same as a painting
that is in good shape. Restoration attempts
can actually decrease the value of an object. Cleaning solvents and modern materials may cause more harm than good.

Most carriers require the appraisals tobe no more than a few years old. The valueof items fluctuates over time, and an oldappraisal may either artificially inflate thevalue or understate the value of the item.

Once the item has been determined to
be a fine art and an appraisal is in hand,
the item can then be scheduled onto the
policy. The HO 04 61 Scheduled Personal
Property Endorsement is commonly
used to insure these items. It provides

This open perils coverage is particularly important. The named perils may
be hazards to all property, but jewelry is
more likely to be lost or damaged than be
damaged by fire, riots, weight of ice, snow
or sleet, or other named perils. Theft is
likely for jewelry, but the HO 00 03 has a

$1,500 limit for theft of jewelry, watches,
furs, precious or semiprecious stones, or
$2,500 for theft of firearms and related
equipment. When the scheduled personal
property endorsement is added, the insured is covered for loss by theft and many
other perils. An insured had taken an expensive necklace on a cruise; while looking out over the rail at the water, the necklace slipped off and fell into the ocean.
The loss was covered because the item was
scheduled. Otherwise, the insured would
have had no coverage for the loss.

Fine arts is a broad category with many
types of property. It is important that the
property be appraised for the value so it
can be insured properly, and then an endorsement must be added. Some carriers
give discounts if the property is kept in a
safety deposit box. When in doubt, it is
advisable to discuss the piece with the underwriter so that the insured is properly
protected from loss.

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